NeuroPsychoEconomics

Editors A
Association
i ti for
f NeuroPsychoEconomics
N P h E i
Martin Reimann http://www.neuropsychoeconomics.org
Oliver Schilke ISSN 1861-8243

Editorial Board
Tim Ambler
Ingo Balderjahn
Antoine Bechara
Peter Bossaerts
Eduard Brandstätter
2010
Wolfgang Breuer
John T. Cacioppo
Michael Czinkota
Margit Enke
NeuroPsychoEconomics
Christian E. Elger
Guillén Fernández
Dieter Frey
Flemming Hansen
Conference Proceedings
Scott Huettel
Andrea Gröppel-Klein
Gert Gutjahr
Hans-Georg Häusel
Manfred Holler
Scott Huettel
Peter Kenning
Erich Kirchler
Christian Korunka
Frank Krueger
Camelia Kuhnen
Marco Lehmann-Waffenschmidt
George Loewenstein
Kevin A. McCabe
Michael I. Norton
John P. O'Doherty
Andreas Oehler
Hilke Plassmann
Peter Politser
Scott Rick
Lutz von Rosenstiel
Aldo Rusticini
Gad Saad
Alan G. Sanfey
Dirk Schiereck
Friedrich Schneider
Heinz Schuler
Baba Shiv
Ale Smidts
Manfred Spitzer
Volker Trommsdorff
Bodo Vogt
Kathleen D. Vohs
Bernd Weber
Peter Weinberg
Klaus Wertenbroch
Carolyn Yoon
Paul J. Zak
Imprint
Editors

Association for NeuroPsychoEconomics &

The Decision Neuroscience Research Group, Copenhagen Business School
Flemming Hansen | Martin Reimann | Oliver Schilke

Office in Germany:
Haslangstrasse 7
Munich, Germany 80689

Office in the USA:

American Psychological Association
c/o Jessica Karp
750 First Street, NE
Washington, DC 20002, USA

E-Mail: info@neuropsychoeconomics.org
Internet (English): http://www.jnpe.org
Internet (German): http://www.neuropsychoeconomics.org

Copyright

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relating to reproduction rights, please contact info@neuropsychoeconomics.org.

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2010 NeuroPsychoEconomics / ConNEcs Conference Program
Copenhagen Business School
(Solbjerg Plads 3, DK-2000 Frederiksberg, Denmark)

Presentations will be held in English.

May 31, 2010

04:00-05:30 PM: Annual Meeting of the Editorial Boards of
the Journal of Neuroscience, Psychology, and Economics
and NeuroPsychoEconomics
(Limited to editorial board members only)
Location: Augustinus Meeting Room at Copenhagen Business School

06:00-07:00 PM: Registration

Location: SPs16

06:00-07:00 PM: Reception

Location: SPs16

07:00-10:00 PM: Copenhagen Nightlife

Meeting point: SPs16
Location: Copenhagen City—exact location to be announced during the reception
(paid on your own)

June 1, 2010
08:00 AM: Registration
Location: SPs16

09:00 AM: Welcome note from the conference chairs

Flemming Hansen, Copenhagen Business School &
Martin Reimann, University of Southern California
Location: SPs16

09:15 AM: Invited talk:

Julian Jamison, Federal Reserve Bank of Boston
Advertising and the welfare implications of endogenous preferences
Location: SPs16

3
10:00 AM: Competitive paper session I

Track: Organizational Behavior & Organizational

Decision Neuroscience
Track chair: Ale Smidts, Erasmus University
Location: SPs16
10:00 AM: A neural network approach to forecasting large and medium regional U.S. air carrier
financial stress and bankruptcy
Gritta, Davalos

10:25 AM: Eye-tracking analysis as a complementary technique to psychometric scale analysis –

The case of evaluating different answer formats
Koller, Salzberger, Himmer

10:50AM: The influence of others on our decisions – A closer look at the fundamental nature of
reference group influence on decision-making
Stallen, Smidts, Sanfey

Track: Behavioral Economics & Neuroeconomics 1

Track chair: Thomas Zoëga Ramsøy, Copenhagen Business
School
Location: SPs14
10:00 AM: Augmented replicator equation and socioeconomic dynamics
Dilmaghani

10:25 AM: On mental transformations

Kontek

10:50 AM: Neural basis of risk and ambiguity: An fMRI study

Welpe, Hewig, Stanton, Hecht, Miltner

11:15 AM: Coffee break & Poster session

Location: Strøget

11:45 PM: Key note speech:

Antoine Bechara, University of Southern California
The somatic marker hypothesis and human decision making: Withstanding the test of
time
Location: SPs16

12:45 PM: Lunch

(included in conference fee)
Location: Tønden

4
01.45 PM Competitive paper session II

Track: Consumer Behavior & Neuromarketing

Track Chair: Hilke Plassmann, INSEAD
Location: SPs16
01:45 PM: What advertising managers can learn from brain researchers
Fehse

02:10 PM: Emotions and intention to buy: Applying neuro-IS on the adoption of the iPhone
Hedman, Tscherning

02:35 PM: Net emotional response strength and fMRI

Hubert, Hubert, Hansen, Kenning

03:00 PM: The insentience of brand equity – Two studies of consciousness and brands
Ramsøy, Skov

Track: Behavioral Economics & Neuroeconomics 2

Track chair: Isabell Welpe, Technical University of Munich
Location: SPs14
01:45 PM: How neuroscience methodology can help sponsorship research solving the “black
box” problem
Breuer, Rumpf

02:10 PM: Trading and emotion regulation: The heart of financial decision-making?
Fenton-O’Creevy, Smidts, Lins

02:35 PM: Unconscious brand reactions influence financial decision-making

Harris, Murawski

03:00 PM: An economic institutional analysis of the retirement pro-vision information in

Germany
Haupt, Yollu-Tok

03:25 PM: Best paper award ceremony

Location: SPs16

04:00 PM: Coffee break & Poster session

Location: Strøget

04:30 PM: Invited Talk:

Tim Ambler, London Business School
Predicting consumer supermarket brand choices with neural markers
Location: SPs16

05:15 PM: Good bye note from the editors

Martin Reimann, University of Southern California and
Oliver Schilke, University of California, Los Angeles
Location: SPs16

05:30 PM: End

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2010 NeuroPsychoEconomics / ConNEcs Poster Session

Poster sessions will take place from 11:15 AM to 11:45 AM and from 04:00 PM -04:30 PM at “Strøget.”

Poster session participants must display their poster by 08:30 AM on Tuesday, June 1 2010 at designated spaces
at the conference venue.

P1 Call-response improvisation. New insights in the study of creativity

Friis-Olivarius, Wallentin, Roepstorff, Ramsøy, Vuust

P2 A model of hypnotic communication in the consumption experience

Guido, Prete, Pichierri, Bleve

P3 Exchange or communal: An examination of customer relationships’ orientation from the salesperson’s

perspective
Guo

P4 Perception and effectiveness of commercials: An experimental study using eye-Tracking

Hofer

P5 Automatic processes and neural correlates of compulsive buying behavior in men

Hubert, Hubert, Büttner, Florack, Kenning

P6 Price memory and the life you live

Linzmajer, Eberhardt, Kenning

P7 Are every-day consumer choices driven by value or brightness of choice options? Insights from vision
science
Milosavljevic, Navalpakkam, Koch, Rangel

P8 The contribution of emotions and nonverbal attitude

Schlegl

P9 Ad-editorial congruency and side of ad presentation affect attention and memory for print
advertisements
Simola, Kivikangas, Krause

P10 Level of perceptual expectedness influences the preference for novel brand logos
Skov, Ramsøy

P11 Disorganized children: The emotional and financial cost of unidentified neuro-developmental
difficulties in children and adolescents
Stein, Chowdhury

P12 What happened…and how fix it? Resolving conflict at home, at school and in the workplace
Stein, Pearce, McMillan

P13 Excalibur: Multi-agency intervention and support barometer

Stein, Sebire

P14 Frames, decisions and cardiac-autonomic control

Sütterlin, Herbert, Schmitt, Vögele

P15 Cognitive control capabilities, routinization and decision-making

Laureiro-Martinez, Brusoni, Zollo

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Map of Copenhagen Business School

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Contents

Gritta, Davalos
A neural network approach to forecasting large and medium regional US air carrier financial stress and
bankruptcy............................................................................................................................................................. 13

Koller, Salzberger, Himmer

Eye-tracking analysis as a complementary technique to psychometric scale analysis
– The case of evaluating different answer formats............................................................................................... 14

Stallen, Smidts, Sanfey

The influence of others on our decisions
– A closer look at the fundamental nature of reference group influence on decision-making ............................. 15

Dilmaghani
Augmented replicator equation and socioeconomic dynamics ............................................................................. 16

Kontek
On mental transformations .................................................................................................................................... 17

Welpe, Hewig, Stanton, Hecht, Miltner

Neural basis of risk and ambiguity: An fMRI study ............................................................................................. 18

Fehse
What advertising managers can learn from brain researchers ............................................................................... 19

Hedman, Tscherning
Emotions and intention to buy: Applying neuro-IS on the adoption of the iPhone............................................... 20

Hubert, Hubert, Hansen, Kenning

Net emotional response strength and fMRI........................................................................................................... 21

Ramsøy, Skov
The insentience of brand equity – Two studies of consciousness and brands ....................................................... 22

Breuer, Rumpf
How neuroscience methodology can help sponsorship research solving the “black box” problem ...................... 23

Fenton-O’Creevy, Smidts, Lins

Trading and emotion regulation: The heart of financial decision-making? .......................................................... 24

Harris, Murawski
Unconscious brand reactions influence financial decision-making ...................................................................... 25

Haupt, Yollu-Tok
An economic institutional analysis of the retirement pro-vision information in Germany ................................... 26

Friis-Olivarius, Wallentin, Roepstorff, Ramsøy, Vuust

Call-response improvisation. New insights in the study of creativity ................................................................... 27

Guido, Prete, Pichierri, Bleve

A model of hypnotic communication in the consumption experience .................................................................. 28

Guo
Exchange or communal: An examination of customer relationships’ orientation from the salesperson’s
perspective ............................................................................................................................................................ 29

Hofer
Perception and effectiveness of commercials: An experimental study using eye-tracking ................................... 30

11
Hubert, Hubert, Büttner, Florack, Kenning
Automatic processes and neural correlates of compulsive buying behavior in men ............................................. 31

Linzmajer, Eberhardt, Kenning

Price memory and the life you live ....................................................................................................................... 32

Milosavljevic, Navalpakkam, Koch, Rangel

Are every-day consumer choices driven by value or brightness of choice options?
Insights from vision science .................................................................................................................................. 33

Schlegl
The contribution of emotions and nonverbal attitude............................................................................................ 34

Simola, Kivikangas, Krause

Ad-editorial congruency and side of ad presentation affect attention and memory for print advertisements ....... 35

Skov, Ramsøy
Level of perceptual expectedness influences the preference for novel brand logos .............................................. 36

Stein, Chowdhury
Disorganised children: The emotional and financial cost of unidentified neuro-developmental difficulties in
children and adolescents ....................................................................................................................................... 37

Stein, Pearce, McMillan

What happened … and how fix it? Resolving conflict at home, at school and in the workplace ......................... 38

Stein, Sebire
Excalibur: Multi-agency intervention and support barometer ............................................................................... 39

Sütterlin, Herbert, Schmitt, Vögele

Frames, decisions and cardiac-autonomic control ................................................................................................ 40

Laureiro-Martinez, Brusoni, Zollo

Cognitive control capabilities, routinization and decision-making ....................................................................... 41

12
A neural network approach to forecasting large and
medium regional US air carrier financial stress and
bankruptcy
Richard Gritta*, Sergio Davalos

Abstract

Analysts have turned increasingly to newer techniques to measure the financial health of firms. Neural networks
(NN) borrowed from Artificial Intelligence (AI) have been one of the newer approaches. This paper applies the
use of neural networks to an important applied forecasting problem. That problem is the health of the U.S. airline
industry, a vital part of the nation’s transportation system. It is the continuation of our research into the
forecasting of air carrier financial stress and bankruptcy. Prior studies (Chow, Gritta, Leung, 1991; Davalos,
Gritta, Chow, 1999) focused on the larger airlines, called majors and nationals by the Department of
Transportation (DOT). These studies utilized neural networks, Multiple Discriminant Analysis (MDA), Genetic
Algorithms (GAs), and other models, such as logit/probit, to identify financially stressed or failing airlines. The
applications of several of these models (MDA, GA, logit/probit, etc.) to the smaller carriers did not initially
achieve the same results. The use of a neural network seemed to be a good alternative to many of these
techniques for reasons that will be explored. A preliminary NN study (Gritta, Chow, Davalos, Wang, 2000)
using only smaller carriers showed promise. Since that study included only 9 failed carriers, a larger sample was
needed to better gauge the powers of the model. A subsequent study (Davalos, Gritta, Wang, 2002) expanded the
sample and obtained more significant results. The purpose of the current study is to add several more carriers and
to update that analysis to be if the neural network maintains its ability to separate out the healthy from the
financially stressed.

*
Corresponding author: Richard Gritta, University of Portland, E-Mail: gritta@up.edu.

13
Eye-tracking analysis as a complementary technique
to psychometric scale analysis –
The case of evaluating different answer formats
Monika Koller*, Thomas Salzberger, Christoph Himmer

Abstract

Measurement in the social sciences is typically concerned with latent variables like attitudinal predispositions or
behavioral intentions. In both survey research and experimental research their quantification usually relies on
multi-item scales. Each item and its associated response scale represent a stimulus, the respondent reacts to. It
has been demonstrated repeatedly that the type and the design of the response scale (e.g., appropriate number of
response categories or labeling of response options) may have a major impact on the responses provided.
However, another important characteristic of the response scale, namely the direction of a Likert-type response
scale (agree>>disagree format versus disagree>>agree), has attracted less attention. In two different studies
Salzberger and Koller (2008, 2009) investigated these two different formats in both PAP and ONL settings and
concluded that the agree>>disagree format performs much better, exemplified by two different latent constructs,
based on the Rasch measurement model. In the present study, eye-tracking data of a total of 30 right-handed
respondents was collected in order to get more insight into the process of answering to a verbal stimulus and
varying response formats. Preliminary eye-tracking results show that, as hypothesized, different reading patterns
emerged for the two response formats presented.

*
Corresponding author: Monika Koller, Vienna University of Economics and Business, E-Mail: monika.koller@wu.ac.at.

14
The influence of others on our decisions –
A closer look at the fundamental nature of reference
group influence on decision-making
Mirre Stallen*, Ale Smidts, Alan Sanfey

Abstract

Decision-making is often influenced by the behavior of others. For instance, people frequently make similar
decisions as their friends do (e.g. teenagers may choose to wear clothing that is identical to that of their buddies),
while they also often choose differently than the ones they do not like (e.g. the clothing should not be identical to
what is worn by “uncool” kids). Groups that influence an individual in the process of decision-making have been
labeled as ‘reference groups’. Given the large impact of reference groups on individual decision-making, these
groups are of great importance for marketers. Therefore we designed a study to get more insight into the
automatic nature of reference group influence. Our results suggest that the influence of reference groups on
decision-making is a very fundamental process which occurs under surprisingly minimal conditions: Even when
decision-making takes place in a domain for which identity signaling is irrelevant and even when group
identification is low, people’s decisions are shaped by the behavior of others. In a next phase of the experiment,
the neural correlates of the mechanism underlying reference group influence will be investigated.

*
Corresponding author: Mirre Stallen, Erasmus University, E-Mail: Mirre.Stallen@fcdonders.ru.nl.

15
Augmented replicator equation and socioeconomic
dynamics
Maryam Dilmaghani*

Abstract

The replicator equation is one of the standard frameworks for evolutionary analysis. It is used for modelling the
changes in population proportion of types through selection mechanisms. This work proposes a modified version
for the replicator equation that incorporates emotional incentives behind human social behaviour, making this
equation suitable for the modelling of social influence. Existing literature suggests these emotional incentives to
be conformity and status-seeking. In my proposed version the dynamic impacts of these incentives are
formulated in terms of population proportions, leaving the analytical tractability of the replicator equation intact.
The equation is then examined in order to derive its main patterns. It is shown through illustrative examples that
this version of the equation proves to be both empirically useful and theoretically instructive.

*
Corresponding author: Maryam Dilmaghani, Mount Allison University, E-Mail: mdilmaghani@mta.ca.

16
On mental transformations
Krzysztof Kontek*

Abstract

The paper presents an alternative interpretation of the experimental data published by Kahneman and Tversky in
their 1992 study "Advances in Prospect Theory”, which describes the Cumulative version of their Prospect
Theory from 1979. It was assumed that, apart from the operations made during the initial stage of problem
resolution, which Prospect Theory defines as Editing (here generalized as Mental Adaptation), other mental
transformations such as Prospect Scaling (resulting from Focused Attention) and Logarithmic Perception of
Financial Stimuli should be considered when analyzing the experimental data. This led to the design of an
explicit, simple and symmetric solution without the use of the probability weighting function. The double S-type
function obtained (the aspiration function) resembles the utility curve specified by the Markowitz hypothesis
(1952) and substitutes the fourfold pattern of risk attitudes introduced by Cumulative Prospect Theory. The
results presented constitute a basis for negating Prospect Theory as a theory which correctly describes how
decisions are made under conditions of risk and may signal a return to a description of people’s behavior that
only relies on the utility-like function

*
Corresponding author: Krzysztof Kontek, Artal Investments, E-Mail: kkontek2000@yahoo.com.

17
Neural basis of risk and ambiguity:
An fMRI study
Isabell M. Welpe*, Johannes Hewig, Angela Stanton, Holger Hecht,
Wolfgang Miltner

Abstract

Risk and ambiguity are important concepts in theories of managerial and entrepreneurial behavior. Whereas risk
is defined as a pure gamble with known probabilities and outcomes (e.g. a lottery ticket), ambiguity is defined as
a compound case of risks in which more than one outcome is possible and the probability associated with each
outcome is unknown. It is often assumed that managers and entrepreneurs have a superior ability to deal with
decisions under risk and with ambiguous information. Previous research has often used simple risk as proxy to
measure entrepreneurial decisions under risk, transposed the answers to entrepreneurial decision-making in
response to ambiguity, thus combining and treating risk and ambiguity parameters as one. We argue that it is
necessary to differentiate between the two for the following reasons. First, using simple risk-type questions that
do not relate to real managerial decision-making tasks ignore that agents have the propensity to turn them into an
unknown degree of ambiguity or uncertainty. Second, managers and entrepreneurs rarely play pure gambles and
thus seldom deal with pure risk. Rather they are surrounded with ambiguity or even uncertainty, a type of risk
that arises from lack of information. The present study aims to extend the knowledge about brain structures
involved in decision-making under different degrees of risk and under ambiguity.

*
Corresponding author: Isabell M. Welpe, Technical University of Munich, E-Mail: welpe@tum.de.

18
What advertising managers can learn from brain
researchers
Kai Fehse*

Abstract

In order to assess the potential relevance of neuroscience to marketing-communications, one should look beyond
the few fmri-studies that have been published on this topic. Marketing and advertising practitioners can
particularly benefit from instead applying generic findings from cognitive neuroscience. These findings often
strongly conflict with the prevailing doctrine of advertising science, and even more with the heuristics of its
practitioners. For example, advertising managers seem to be unaware of the fact that the brain constructs its
environment instead of perceiving it; that there are two dissociated memory systems; and that emotional and
rational cognitions are tightly interwoven on a neuronal level and are by no means separate phenomena.
Naturally, these general findings also apply to advertising stimuli. What the advertising industry can learn may
seem trivial to ist “teachers” from neuroscience; for their “pupils” in agencies and advertising departments, these
lessons are still valuable and useful. Even more so, if these teachings are summed up by a simple heuristic like
the CASE2-model for advertising impact.

*
Corresponding author: Kai Fehse, Institute for Cognition and Communication, E-Mail: kf@icc-institute.org.

19
Emotions and intention to buy:
Applying neuro-IS on the adoption of the iPhone
Jonas Hedman, Heidi Tscherning*

Abstract

Neuro-IS assumes that all behavior, including intention to behave, is elicited by stimuli, emotions and emotional
response. We develop and test the Emotion Cognition Behavior model and introduce feeling words in an
Information Systems (IS) context. We test the role of emotions in an exploratory setting, namely the adoption of
the iPhone in Demark. The iPhone was chosen as study object, as it had not yet been released in Denmark at the
time of the study and thus was a novel study object. A research model that includes stimuli, emotions, emotional
response and cognitive processes as latent variables and intention to buy as predictor was developed to test the
role of emotions. The hypotheses derived from the research model are tested by the use of Structural Equation
Modelling (SEM). Five hypotheses were developed to explain the relationship between the latent variables and
the predictor, and the results show that positive emotions elicit the cognitive process constructs “image” and
“compatibility” as well as the predictor “intention to buy”. However, the test does not support that image is
positively related to people’s intention to buy and the test only provides some support for the hypothesis that
compatibility is positively related to people’s intention to buy an iPhone.

*
Corresponding author: Heidi Tscherning, Copenhagen Business School, E-Mail: htj.caict@cbs.dk.

20
Net emotional response strength and fMRI
Marco Hubert*, Mirja Hubert, Flemming Hansen, Peter Kenning

Abstract

The application of traditional measurement instruments to analyze emotional responses towards brands often
seems to be insufficient to capture intangible and unconscious aspects within the consumer decision-making
process. On the other hand neurological studies emphasize the importance of essential emotional processes
underlying human decision making. Therefore, the focus of this preliminary study is to link a questionnaire
based measurement technology (Net Emotional Response Strength (NERS)) with an fMRI experiment in order
to firstly, shed light on the functionality and the validity of the traditional measurement instrument and secondly,
to interpret results of the behavioural level in the light of neurophysiologic insights into emotional processing.
Within the fMRI experiment, all participants had to evaluate 35 different brand logos twice according to their
attractiveness. Additionally, we applied a modified version of the original NERS Measurement for each brand
after the fMRI. Three brands (BOSS, Calvin Klein, and Giorgio Armani) were analyzed within a first
preliminary investigation. Thus, by applying NERS-scores for grouping the participants we observed significant
activity changes within brain regions associated with reward, emotions and memory processing. Although the
revealed results are very preliminary, first insights for linking traditional measurements of emotional responses
to brands and fMRI could be provided. Nevertheless further research and analysis is needed and underway to
develop and validate our results.

*
Corresponding author: Marco Hubert, Zeppelin University, E-Mail: marco.hubert@zeppelin-university.de.

21
The insentience of brand equity –
Two studies of consciousness and brands
Thomas Zöega Ramsøy*, Martin Skov

Abstract

Perceiving known brands usually lead to numerous conscious associations that relate to visual, narrative and
episodic memories of previous exposures, and in particular to positive or negative associations. By comparison,
less is known of potential differences between conscious and unconscious responses to known brands, and
whether subjective brand valence can affect these responses. Previous studies have suggested that implicit
processing of brands may affect motivated behaviour, even without conscious awareness (Chartrand 2008).
However, such studies have not determined whether it is possible to measure these implicit brand preferences.
Furthermore, it is yet unknown whether preference for complex cultural information such as brands may have an
impact on the subjective threshold for conscious and unconscious perception. To approach this problem, we
conducted two behavioural studies with equipment that allowed controlled presentation of stimulus durations
and precise measurements of reaction times.

*
Corresponding author: Thomas Zöega Ramsøy, Copenhagen Business School, E-Mail: tzramsoy@gmail.com.

22
How neuroscience methodology can help sponsorship
research solving the “black box” problem
Christoph Breuer, Christopher Rumpf*

Abstract

The industry’s expenditure on sport sponsorship activities has significantly increased during the last two
decades. Since then, a large number of research studies has been accomplished to examine the relative
effectiveness of this marketing communication instrument. However, most studies are methodologically limited
to assessing either the stimulus’ impact by exposure analysis or the consumer’s response by recall or recognition
measures. Consequently, contributions on the cognitive perception and information processing of sponsorship
stimuli remain marginal. The present paper takes this limitation as a starting point in order to discuss the capacity
of neuroscience methods like eye-tracking. Eye-tracking enables researchers to measure the consumer’s visual
attention to sponsorship stimuli and thereby contributes to our understanding of sponsorship stimuli processing.
This is relevant to the evaluation of economic benefits since it reveals the effective contact with a certain
sponsorship activity rather than a mere opportunity to be seen. After giving a brief outline of the consumer’s
general reception in a sport sponsorship context we will discuss the “black box” problem and the difficulties with
an economic sponsorship evaluation. Next, an experimental study will be presented in which visual attention to
sport sponsorship stimuli has been investigated.

*
Corresponding author: Christopher Rumpf, German Sport University Cologne, E-Mail: c.rumpf@dshs-koeln.de.

23
Trading and emotion regulation:
The heart of financial decision-making?
Mark Fenton-O’Creevy*, Ale Smidts, Jeffrey Todd Lins

Abstract

We study the role of emotions and emotion regulation in financial markets. We argue that variability in emotion
regulation is a good candidate to explain important intra and inter-individual variability in susceptibility to key
decision-making biases and hence in financial performance of market actors. We will present the results of a
pilot study in which we investigate the role of emotion regulation in relation to the decision-making of
professional traders in an investment bank. Highly experienced and less experienced traders will be compared in
how they react to a news event that is salient to the pricing of products they trade. The traders are monitored over
a period from one hour prior to the news event to one hour after the news event. The monitoring consists of
measuring: 1) heart rate and heart rate variability, 2) video capture of activity to study facial expressions, activity
and audio (the trader is asked to provide a constant spoken narrative of their actions and decisions including
commentary on feelings), and 3) time stamped trading data will be captured along with relevant price data.
Analysis focuses first on providing a rich description of the unfolding of trading performance episodes, including
the nature of emotional response and regulation. A rich qualitative account of reactions to key market events will
be constructed for each trader and comparisons will be made between traders in the ‘expert/inexperienced’ pairs.

*
Corresponding author: Mark Fenton-O’Creevy, Open University Business School, E-Mail: m.p.fenton-ocreevy@open.ac.uk.

24
Unconscious brand reactions influence financial
decision-making
Philip Harris*, Carsten Murawski

Abstract

A growing body of research shows that consumer decision-making for products and brands is meaningfully
shaped by affect. In parallel, research examining influences of mood states and other transient affective states on
judgement and decisions demonstrate that incidental affect powerfully shapes judgement and decisions. In this
research we examine incidental effects of brand presentation on financial decision-making. We explore the
possibility that brands can impact on decisions by influencing affective systems underlying decision-making.
Our results indicate that brand images with affective value can shift incidental decision-making towards
affectively-driven choices. Furthermore, these effects occur without conscious awareness of the identity of the
brand stimuli. These findings provide initial evidence that brands may impact on behaviour outside of the
consumer context by modulating affective systems underlying decision-making.

*
Corresponding author: Philip Harris, University of Melbourne, E-Mail: hap@unimelb.edu.au.

25
An economic institutional analysis of the retirement
pro-vision information in Germany
Marlene Haupt*, Aysel Yollu-Tok

Abstract

As a result of demographic and economic developments as well as the reduction in the benefit levels provided by
the Federal German Retirement Fund, the provisions of individuals' private pensions have gained in importance.
Consequently, the informational needs of beneficiaries have increased, as a wider range of options are open to
them and more diverse obligations are associated with complex pension products and services that are
supplemented by public subsidies. Drawing on an economic-institutional framework, an analysis of the Federal
Pension Fund in Germany as well as the privately funded 'Riester' pensions can be used to illustrate, firstly, how
the normative and actual behaviour of beneficiaries differ and, secondly, the behaviour-theoretical reasons for
that discrepancy. A holistic and analytical concept that can be used to explain human behaviour is the homo
oeconomicus institutionalis. This links economic and psychological preferences. The paper concludes by noting
that a delta analysis can identify the behavioural modifications that contribute to a reduction in the gaps between
normative and actual behaviour. This can lead to recommendations for policy makers so that existing
information on retirement provisions can be optimized.

*
Corresponding author: Marlene Haupt, University Koblenz-Landau, E-Mail: hauptmarlene@uni-landau.de.

26
Call-response improvisation:
New insights in the study of creativity
Morten Friis-Olivarius*, Mikkel Wallentin, Andreas Roepstorff, Thomas
Zöega Ramsøy, Peter Vuust

Abstract

Nearly all neuroimaging studies of creative behavior investigate verbal associations. These studies find an
involvement of the left dorsolateral prefrontal cortex (DLPFC). In contrast, two recent studies of pianists found
the right DLPFC to be linked with non-verbal creative behavior. Musicians, however, often communicate on
stage through their playing. But does this improvised interaction involve left- or right-lateralized prefrontal brain
regions? To investigate this, we conducted a functional magnetic resonance imaging (fMRI) experiment where
participants had to improvise a musical answer to a given musical rhythmic phrase. We found that only the left
DLPFC was activated during response creation compared to control, indicating that musical communication
resembles that of linguistic behavior rather than strictly non-linguistic behavior.

*
Corresponding author: Morten Friis-Olivarius, Copenhagen Business School, E-Mail: mr.friis@gmail.com.

27
A model of hypnotic communication in the
consumption experience
Gianluigi Guido*, M. Irene Prete, Marco Pichierri, Barbara Bleve

Abstract

In their purchase decision processes, consumers can be affected by a magnetic mechanism similar to what
influences hypnotized individuals. Purchasing decisions are often based on apparently unconscious and
emotional reasons, and the response to this need can be provided by hypnotic communications, which turn an
abstract idea into a real and credible benefit for products/services. Defined hypnosis as a state of focused
attention, it is plausible to make the comparison between the hypnotic phenomena and the "absorption" of the
consumer in the consumption’s experience. This study describes how the methods of the persuasive
communication replicate the workings of the hypnotic phenomena and how hypnotic and persuasive marketing
communication can be a powerful tool for implanting ideas or suggestions. A model of persuasive
communication structured on the following three levels is proposed: i) Appealing to emotions and latent stimuli
is the first stage to activate the post-hypnotic suggestion; ii) The post-hypnotic suggestion becomes action when
a situation or a state recalls the hypnotist’s suggestion; iii) Suggestion needs to be reinforced so that an action
could be repeated. Implications for marketing are discussed.

*
Corresponding author: Gianluigi Guido, University of Lecce, E-Mail: g.guido@agora.it.

28
Exchange or communal:
An examination of customer relationships’ orientation
from the salesperson’s perspective
Lei Guo*

Abstract

Cultivation of successful customer relationships is accomplished through individual firms’ employees, especially
the salesperson. Although prior research has established a link between salesperson’s characteristics and
customer relationships, little research has addressed salesperson’s perspective in cultivating customer
relationships. In the present study, we have drawn on the literature on relationship marketing and social
psychology; and formalized our conceptual model of customer relationship orientations from the salesperson’s
perspective. This model illustrates that a customer relationship is either communal or exchange oriented where
the salesperson’s perceived relationship benefits and customers’ characteristics are determinants of the
relationship orientation. We tested the model with salespeople from business-to-business companies in Chinese
business context. Initial 132 survey responses indicated that customer relationship is both exchange and
communal oriented. Furthermore, we noted that salespeople are likely to develop communal type relationships
with their favorable customers as well as with those who are similar.

*
Corresponding author: Lei Guo, University of Exeter, E-Mail: lg232@exeter.ac.uk.

29
Perception and effectiveness of commercials:
An experimental study using eye-tracking
Natalie Hofer*

Abstract

In the underlying study a theoretical model has been designed in order to explain the perception and
effectiveness of TV commercials. The model centers on the influence of product involvement, familiarity with
the commercial, attitude toward advertising in general (as factors which influence visual attention top-down),
and brand position/position of the web address in the commercial (as a bottom-up factor) on eye movements of
consumers. The study is the first to confirm the influence of top-down-factors such as product involvement and
familiarity with the commercial on eye movements. Within commercials with moderate – compared to low or
very high – complexity the position of the web address has a positive impact on the number of fixations on the
address, if the address is shown all over the commercial instead of being shown only at the end. Eye movements
of the respondents also predict the effectiveness of commercials in regard to the attitude toward the commercial
(e.g. “relevance”, “transparency”) and the attitude toward the brand (e.g. “cognitive aspects”). The findings
support that a commercial’s power to concentrate consumers’ attention (= fixation density) predicts the
respondent’s attitude toward the commercial. The greater a respondent’s fixation density is, the better the
commercial is rated by the respondent concerning the “relevance” of the commercial.

*
Corresponding author: Natalie Hofer, Vienna University of Economics and Business, E-Mail: natalie.hofer@wu.ac.at.

30
Automatic processes and neural correlates of
compulsive buying behavior in men
Mirja Hubert*, Marco Hubert, Oliver B. Büttner, Arnd Florack, Peter
Kenning

Abstract

A considerable number of consumers suffer from financial problems that are the result of impulse buying and
overspending. Indeed, in an extreme form impulse buying and overspending can be considered as a compulsive
buying disorder. Recent studies have shown that lacking self-control is an important determinant of compulsive
buying. Our research completes these studies by showing that male consumers who suffer from problems related
to compulsive buying also differ in how much shopping related stimuli automatically activate positive impulses.
In two studies, we presented participants brand logos from the high price segment of various product categories
and measured automatically activated positive associations (Study 1) and the activation of brain areas related to
the reward system (Study 2). We found that automatically activated positive associations with the brand logos
were correlated with indicators of compulsive buying such as overspending (Study 1) and that groups
differentiated on the basis of a compulsive buying index showed the expected differences in activation patterns
in brain regions associated with reward.

*
Corresponding author: Mirja Hubert, Zeppelin University, E-Mail: mirja.hubert@zeppelin-university.de.

31
Price memory and the life you live
Marc Linzmajer*, Tim Eberhardt, Peter Kenning

Abstract

Price knowledge has been one of the top behavioral pricing themes over the last decades with considerable
research investigating price knowledge of consumers. A minor focus of research is so far to what degree price
knowledge is dependent on the individual’s memory system. This study tries to combine the marketing concept
of price knowledge with psychophysiological evidence on memory performance with the focus on individual
lifestyle components and its influence on price memory. The exploratory approach is based on a sequential price
processing model and leads to an interesting outcome: When dealing with price knowledge of consumers, a
reconsideration including lifestyle components showed significant effects. Recognition performance was
significantly predicted by twice as much lifestyle components (health status, nutritional habits, physical activity,
satisfaction and affective state, smoking, mental activity) than recall memory performance (health status,
nutritional habits, physical activity). Therefore the results have strong practical and future research implications.
New perspectives are opened up for marketing and sales professionals by better understanding their customers’
way of memorizing price information. In the light of relative imprecise knowledge about lifestyle factors going
beyond the medical sphere, further research in this sense should try to create more reliable measurements.

*
Corresponding author: Marc Linzmajer, Zeppelin University, E-Mail: marc.linzmajer@zeppelin-university.de.

32
Are every-day consumer choices driven by value or
brightness of choice options?
Insights from vision science
Milica Milosavljevic*, Vidhya Navalpakkam, Christof Koch, Antonio
Rangel

Abstract

Imagine that you are in a hurry and have a few seconds available to choose a food item (e.g. from a vending
machine). The available items vary both in subjective value - how much you like each – and in their visual
properties – brightness. How do the two factors affect your choice? In four eye-tracking and button-press
experiments, subjects made choices between pairs of food items with different subjective values. We also
manipulated visual saliency by changing the brightness of the food items. The results indicate that such choices
can be made at sub-second speeds and that visual saliency affects choices when the value of the two items is
similar, which is highly representative of today’s cluttered shopping environment, but that value wins over when
one of the options is highly preferred. The current findings carry important implications for marketing practice,
such as product packaging and shelf-positioning.

*
Corresponding author: Milica Milosavljevic, California Institute of Technology, E-Mail: mmilosav@hss.caltech.edu.

33
The contribution of emotions and nonverbal attitude
Sandra Brigitte Schlegl*

Abstract

The aim of this poster is to demonstrate the use of nonverbal attitude measurement (i.e. via pictures and
emotions) for brand management. A positive attitude towards a brand serves as a predictor for future behaviour
(e.g. buying intention). Therefore, the periodical ascertainment of attitudes is one of the main parts of brand
management. As human information processing mainly works with pictures and emotions, it is doubtful if
attitudes can be surveyed true to reality by sole means of verbal measurement. This is where the method of
nonverbal attitude measurement can be assessed. In this method, the emotional component of the customers'
attitude is ascertained by pictures. Thereby, not only the existence but also the intensiveness of the relevant
emotion can be measured. The empirical study has been examined by structural equation modelling.

*
Corresponding author: Sandra Brigitte Schlegl, Vienna University of Economics and Business, E-Mail:
sandra.schlegl@wu.ac.at.

34
Ad-editorial congruency and side of ad presentation
affect attention and memory for print advertisements
Jaana M. Simola*, Markus Kivikangas, Christina M. Krause

Abstract

Previous research on visual processing of advertisements has mainly focused on formal aspects such as graphics,
size and location of the ads. Currently, little is known about ad content related factors. The present experiment
investigated how semantic relation between the ads and editorials, as well as the side of ad presentation
influenced processing of print advertisements. Ad processing was studied in a typical newspaper reading
situation, where the eyes land on the ads as part of scanning on the page. We examined situations in which the
topic of the ad was either semantically congruent or incongruent with the content of the editorial texts. The aim
was to test to which extent the semantic congruency and the side of the ad presentation affected attention and
memory for the advertisement pictorials and brand-logos. We recorded eye movements since the method has
proven to be a good indicator of the locus of visual attention. Recognition of the ads and the logos was measured
to infer how deeply the ad message was processed during the initial viewing of the newspaper pages.

*
Corresponding author: Jaana M. Simola, University of Helsinki, E-Mail: jaana.simola@helsinki.fi.

35
Level of perceptual expectedness influences the
preference for novel brand logos
Martin Skov*, Thomas Zöega Ramsøy

Abstract

Brands are among the main vehicles for companies to ensure consumers’ attention and memory. Influencing the
brand equity of a given brand starts at the formation of first impressions. It is well documented that novel
information, including novel brands, are initially treated with a relative skepticism. With repeated exposure this
negative response has been shown to fade and change into a more favorable evaluation of the information.
Although this initial exposure effect has been demonstrated across different domains, little is known about the
underlying psychological and neural factors influencing it. Recent studies suggest that skepticism for novel
information is in part caused by stimulus predictability where unexpected stimuli, by activating specific aversion
related brain states, cause avoidance behavior. Using a recently devised method from cognitive neuroscience, we
sought to test whether auditory predictability and unpredictability, known to produce aversive behavioral and
neural responses, would influence first impressions to novel brand logos. During testing, novel brand logos
associated with unpredictable sounds were rated significantly lower than brand logos associated with predictable
sounds. Exploratory analyses uncovered unexpected effects of gender and brand logo category. These results are
discussed in light of factors influencing first impressions, suggesting implications for brand logo design.

*
Corresponding author: Martin Skov, Copenhagen Business School, E-Mail: mskov01@gmail.com.

36
Disorganised children:
The emotional and financial cost of unidentified neuro-
developmental difficulties in children and adolescents
Samuel Stein*, Uttom Chowdhury

Abstract

“Disorganised children” suffer from a wide array of neuro-developmental processing problems that actively
impede their emotional, social and academic progress. Unfortunately, rather than being recognised early as
having neurologically-based deficits, they are often referred to child and adolescent mental health services much
later due to concerns about emotional and behavioural problems. Whilst these “disorganised children” often fail
to meet the strict diagnostic criteria for any one particular diagnosis, their presentation is extremely consistent
with subtle neuro-biological deficits which are of sufficient severity to cause difficulties day to day, both within
the family and within the classroom. If these children can be identified early, and receive appropriate therapeutic
help, they are more likely to remain in school and engage within the community rather than becoming
educationally and socially marginalised. The aim of this presentation is to highlight the needs of this very
interesting, and yet often overlooked, group of children before they are negatively and unhelpfully labelled as
simply being badly behaved, with an emphasis on punishment rather than on help and support. If not identified
and treated when still young enough to change, the emotional and financial costs of this missed diagnosis are
potentially astronomical with significantly worse adult outcomes.

*
Corresponding author: Samuel Stein, Bedfordshire & Luton Community NHS Trust, E-Mail: samuelstein@pitchcott.demon.co.uk.

37
What happened … and how fix it?
Resolving conflict at home, at school and in the
workplace
Samuel Stein*, Duncan Pearce, Helen McMillan

Abstract

Getting on with other people can sometime be very difficult. Everyone has their own ideas about what is right,
and their own thoughts about how to do things. This can lead to arguments at home, at school or in the
workplace when people want to do things differently, or don’t see things the same way. Often when this
happens, people spend most of their time worrying about who did what, and who is to blame. They don’t spend
nearly as much time thinking about how to fix the problem. This mediation-based approach therefore attempts to
change that, and to have most people spending most of their time and energy looking at making things better. It
may be that no-one will get everything they want, or have everything their own way, but at least everyone should
get a fair share of what they want. It can be used with families at home, and with pupils in schools. It can also be
used by adults experiencing marital friction or for problems at work. If implemented effectively, mediated and
negotiated solutions can provide a more viable, more satisfying and more economical way of dealing with
conflict across a whole range of settings.

*
Corresponding author: Samuel Stein, Bedfordshire & Luton Community NHS Trust , E-Mail: samuelstein@pitchcott.demon.co.uk.

38
Excalibur:
Multi-agency intervention and support barometer
Samuel Stein*, Christopher Sebire

Abstract

Over the past decade, heavy criticism has been directed towards mental health and social care services for failing
to manage children and families at risk more effectively. Unfortunately, traditional risk assessment tools have
proved of limited usefulness, especially as they struggle to address multiple risks within a single measure and
fail to facilitate effective communication between different professionals and agencies. Risk management should
also be conducted in a spirit of collaboration with service user, building on their strengths and emphasising
recovery. Recognising these problems, the Multi-Agency Intervention and Support Barometer has been designed
to provide a unique but comprehensive approach to risk management. It utilizes a broad-based clinical approach,
in a user-friendly format, with major emphasis on intervention and recovery rather than on risk identification
alone. The barometer also promotes follow-through from assessment to treatment, and provides effective
communication across teams, services and agencies. In addition, the barometer allows for easy updating and
tracking of changes over time, and emergency alerts are automatically triggered when patients score highly on
risk factors being measured. If integrated into health and social care, the barometer will actively reduce risk
whilst also improving clinical care and providing essential support for vulnerable children and families.

*
Corresponding author: Samuel Stein, Bedfordshire & Luton Community NHS Trust , E-Mail: samuelstein@pitchcott.demon.co.uk.

39
Frames, decisions and cardiac-autonomic control
Stefan Sütterlin*, Cornelia Herbert, Michael Schmitt, Claus Vögele

Abstract

The „framing effect“ (FE) describes the phenomenon that human choices are susceptible to the way they are
presented rather than objective information. The present study extends common decision-making paradigms with
frame variation by including inhibitory control, operationalized as vagally mediated heart rate variability (HRV)
at rest and motor response inhibition during a stop-signal task (SST). We hypothesized that inhibitory control is
inversely associated with susceptibility to framing effects. Forty adult volunteers performed a risky choice
framing task in which identical information about wins and losses was presented using loss or gain frames. As
predicted, there was an inverse association between HRV and framing effects, accounting for 23% of the
variance in framing effects. Inhibitory control as indexed by performance in the SST was not associated with
framing effects. These results are discussed in terms of the role of inhibitory processes (as indicated by vagal
activity) for decision-making processes.

*
Corresponding author: Stefan Sütterlin, Université du Luxembourg, E-Mail: stefan.suetterlin@uni-wuerzburg.de.

40
Cognitive control capabilities, routinization and
decision-making
Daniella Laureiro-Martinez*, Stefano Brusoni, Maurizio Zollo

Abstract

The link between the mindful and less-mindful perspectives is relatively underdeveloped (Levinthal & Rerup,
2006) and even less so is our understanding of the combined impact that superior cognitive abilities (i.e.
mindful) and routinization (i.e., less mindful) simultaneously have on decision-making. This paper intends to fill
this gap introducing the concept of cognitive control capabilities, i.e. an individual’s ability to regulate one’s
attention modulation processes. Through an experimental study we first show that differences in individuals’
cognitive control capabilities actually influence adaptive managerial decision-making. Second, better
performance in a decision making task is obtained only when superior cognitive control capabilities are
combined with the ability to routinize decisions. Finally, we conclude this paper exploring the implications of
our results.

*
Corresponding author: Daniella Laureiro-Martinez, Bocconi University, E-Mail: dlaureiro@gmail.com.

41
42
2011 Call for papers

Please be invited to submit a paper to the 2011 NeuroPsychoEconomics / ConNEcs Conference in Munich,
Germany. The conference will be held from May 26-27, 2011 at TUM Business School of the Technical
University of Munich (Arcisstrasse 21, Munich, Germany). The conference will be chaired by Isabell Welpe,
Professor of Strategic Management and Organizations, TUM Business School. The deadline for submissions is
January 15, 2011.
The conference theme of 2011 is:

“Excellence in Neuroeconomics – Striving for Impact

in Economics, Management, and Marketing Research”
Manuscripts should combine concepts from neuroscience and/or psychology with problems of business and
economics. Topics may include (but are not restricted to):
 Application of concepts and methods from neuroscience and/or psychology in solving business and economics
problems (e.g., marketing, behavioral finance, organization science, management, and decision science)
 Analysis of interpersonal behavior (e.g., relationships between customer-supplier, supervisor-subordinate,
and/or investor-firm) with the means of neuroscience and/or psychology
 Discussion of ethical and legal issues at the interface of psychology, neuroscience, and business and
economics research
 Evaluation of the state of the field of research in neuroeconomics
 Presentation of state-of-the-art techniques for solving neuroeconomic problems
Empirical as well as conceptual manuscripts are welcome. Manuscripts submitted for the conference must not be
published elsewhere at the time of the conference. The conference language will be English.

Full paper submissions

 Manuscripts for the 2011 NeuroPsychoEconomics / ConNEcs Conference must be submitted by January 15,
2011.
 Manuscripts passing the double-blind review process will be accepted for presentation at the conference.
Manuscript submissions must be accompanied by a cover letter that indicates the intention to publish the
paper, if accepted, either in its entirety in the “Journal of Neuroscience, Psychology, and Economics” (ISSN
1937-321X) for English submissions, in the journal “NeuroPsychoEconomics” (ISSN 1861-4523) for German
submissions, or in abstract form (English only) in the “NeuroPsychoEconomics Conference Proceedings”
(ISSN 1861-8243).
 English manuscript submissions must conform to the author guidelines of the American Psychological
Association (APA). Please see http://www.jnpe.org for more submission information.
 German manuscript submissions must conform to the author guidelines of the Association for
NeuroPsychoEconomics. Please see http://www.neuropsychoeconomics.org for more submission information.
 In submitting a manuscript, the authors affirm that, if accepted, at least one author will register for the
2011 NeuroPsychoEconomics / ConNEcs Conference and appear at the conference to present the paper.

43
Poster submissions
 Posters for the 2011 NeuroPsychoEconomics / ConNEcs Conference must be submitted by January 15, 2011.
 Posters passing the double-blind review process will be accepted for presentation at the conference. Poster
submissions must be accompanied by a cover letter that indicates “poster submission” and an extended
abstracts (1,000 words max.) that describes the research presented on the poster. Please submit the extended
abstract through http://www.jnpe.org. Extended abstracts will be published in the “NeuroPsychoEconomics
Conference Proceedings” (ISSN 1861-8243).
 English poster submissions (that is, extended abstracts) must conform to the author guidelines of the American
Psychological Association (APA).
 Posters may have a maximal size of 120cm (height) x 90cm (width).
 In submitting a poster, the authors affirm that, if accepted, at least one author will register for the
2011 NeuroPsychoEconomics / ConNEcs Conference and appear at the conference to present the poster.

44
Membership & mailing list
Membership
You can become a member of the Association for NeuroPsychoEconomics online at http://www.jnpe.org or
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Membership includes a subscription to either the peer-reviewed scientific English “Journal of Neuroscience,
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45